70 Canadian Mines, Indigenous Communities

Canadian Mines, Indigenous Communities and Accountability in Guatemala: What Role for the Media? Cara Haberman Columbia University, New York Keywords : accountability, Canada, corporate social accountability, Guatemala, under-reporting, watchdog Abstract This article examines the role of the Canadian press as corporate watchdog. A content analysis of Canadian newspapers over a five-year period reveals that human rights abuses perpetrated by Canadian mining companies in Guatemala are under-reported. Sourcing constraints, lack of newsworthiness and other traditional journalism standards help explain why this story is ‘missing’ in the traditional press. Reporting critical of the mining companies was produced principally by individual journalists with a personal interest in the issue; however readership and ownership patterns in the Canadian media detract from the potential influence that this independent reporting may have. Ongoing conflicts between indigenous Guatemalans and Canadian mining companies working in the country’s highlands are periodically exposed by the news media. Large Canadian companies such as Goldcorp and HudBay have been accused of leaching arsenic into the groundwater, causing mineral poisoning of local communities, forcing the expulsion and relocation of Mayan villagers, ignoring the land rights of indigenous communities, and aiding and abetting pro-mining militias who have assassinated local activists. Rather than being isolated incidents, these atrocities are widespread due in part to the policies of both the Guatemalan and Canadian governments. The Guatemalan government has been supporting foreign development of its extractive industries under the advice of the World Bank since the 1990s; Oxfam-America estimates that mining concessions currently cover over 10 percent of the countryside and that Canadian companies own 80 percent of these mines. One troubling reason for Canada’s dominance is that regulations on the Toronto Stock Exchange are more lenient than those in New York: in particular, Canada imposes laxer disclosure requirements about the _____________________________ Westminster Papers in Communication and Culture © 2010 (University of Westminster, London), Vol. 7(2):70-97. ISSN 1744-6708 (Print); 1744-6716 (Online) 70 Haberman, Canadian Mines… environmental impact of mining projects. 1 That these human rights abuses are being perpetrated to further the interests of Canadian mining companies is irreconcilable with Canada’s self-proclaimed image as a defender of human rights. The federal government’s website clearly states that ‘Canadians expect their government to be a leader in the human rights field by reflecting and promoting Canadian values on the international stage’ (Department of Foreign Affairs, 2009) and ‘Canada is recognized as a world leader for its efforts to promote and protect human rights’(ibid.). Nevertheless, there are no laws that require Canadian companies working overseas to follow a code of ethics and no mechanism to launch legal investigations of alleged human rights abuses occurring abroad (Patterson, 2005a, 2005c). In this situation, there appears to be great potential for the Canadian news media to play a role in holding Canadian mines to higher standards of corporate responsibility simply by covering events in the area and highlighting mining conflicts. This article investigates whether the Canadian press is indeed playing the role of corporate watchdog for Canadian companies located overseas. The first section explores the theoretical role played by the media in improving corporate responsibility and outlines the mechanisms through which the media could influence mining practices overseas. The following three sections then examine this hypothesis through an in-depth case study of Canadian newspaper coverage of Canadian mining in Guatemala. The second presents the methodology used to select the sample articles. The third section analyses the extent to which the conflict is reported and demonstrates that, to a large extent, mining opposition is ignored by the Canadian media. The fourth section examines sourcing constraints that help explain this lack of coverage and how private actors such as non-governmental organizations (NGOs) and Church groups can overcome this obstacle, while the fifth looks at alternative factors that explain why some reporters covered the story. Finally, the sixth section examines structural aspects of the news media in Canada, including readership and ownership, in order to assess the potential influence of reporting on the case. It will be shown that newspaper coverage of opposition to Canadian mines is extremely limited. In particular, while some independent papers and reporters 1 In addition, Canadian mining companies ‘can pass on 100% of their federal tax deduction for some exploration costs’ to investors and in 2000 ‘the federal government added a tax credit, over and above the deduction, for some of these costs’ (Patterson, 2005b). 71 Westminster Papers in Communication and Culture 7(2) manage to cover the conflict thoroughly, Canada’s most influential paper, The Globe and Mail , caters to business interests; this reduces the likelihood that the news media will help in holding mining companies accountable. The Media’s Role in Promoting Corporate Accountability The media has long been seen as an important part of the checks and balances that exist to prevent abuses of power. But how exactly can the media influence corporate behaviour, and what factors influence the media’s potential in this regard? Alexander Dyck and Luigi Zingales (2002) provide one of the most developed theories that explain the potential of the press to promote corporate responsibility. As part of an international analysis completed for the World Bank, the authors found that the media may shape corporate policy by acting as an information aggregator and thus affecting the reputation of a corporation, its managers and shareholders. In particular, a company’s reputation can be affected in three ways: 1. media coverage can convince politicians to introduce corporate reforms as a result of shaming; 2. coverage can directly affect the reputation of managers and board members in the eyes of shareholders and employees; or, 3. coverage can affect the reputation of corporate affiliates in the eyes of the public. Therefore, following this thesis, in order for the news media to play the role of corporate watchdog, articles would have to include information that would bring shame to corporations, corporate affiliates or general society if widely read. The media as a watchdog could thereby influence public opinion and this, in turn, could bring about either stricter government regulation of companies as a result of politicians responding to the concerns of their constituents, or a voluntary shift in corporate policies as a response to the shaming of shareholders and board members. Theorists of social activism support this view of the potential role of the media as a corporate watchdog. For example, in their overview of lessons learned in the movement for greater corporate accountability, Broad and Cavanagh (1999) found that campaigns for corporate responsibility have a greater likelihood of success if they make good use of the media. In particular, they cited evidence from campaigns against sweatshops in Central America that 72 Haberman, Canadian Mines… demonstrated the effect of graphic news stories of corporate abuse on eventual changes in corporate policy. Clearly, however, only a media willing to report on corporate abuses can be a corporate watchdog. Certain structural constraints might influence the media’s potential in this regard. For example, in his ‘Propaganda Model’ of the media, Noam Chomsky refers to the effect of sourcing constraints on coverage: ‘government and corporate sources … have the great merit of being recognizable and credible by their status and prestige’ (Chomsky and Herman, 1988). These elite sources are also far easier to access as they use a variety of tools such as press releases and press conferences to cater to journalists’ needs. As only the corporate sector and the government have the resources necessary to produce this public relations material, their views often dominate news coverage, thus making stories less capable of shaming corporate affiliates. Sourcing practices are therefore a major determinant of whether or not the media can play the role of corporate watchdog. A second factor that constrains the media’s potential as a watchdog is the importance of the paper in which the articles are published. If few citizens read an article, it will have little effect on a corporate reputation. Not surprisingly then, Dyck and Zingales (2002) found that newspaper readership was an important variable in their regression model. Similarly, the importance of the audience of a particular newspaper also influences the media’s impact: an article read by powerful politicians or the chief executive officers of big companies has a greater effect on reputation. 2 Therefore, the credibility and sway of the newspaper in which the article is published must also be taken into account (ibid., 120). Finally, Dyck and Zingales also found that press diffusion, which captures ‘the presence of an active and competing press’ plays a large role in determining private sector responsiveness to media coverage; in fact, press diffusion accounted for 42 percent of the variation in their statistical observations (ibid., 124, 129). Therefore, it is also likely that press ownership

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